Best sell real estate investing author Larry Goins & Co-Host Kandas, will show you the many ways real estate creates the I.D.E.A.L. investment. Whether you want to Flip houses or become a passive investor making double-digit returns while others do all the work. You will learn how here on BRAG Radio.

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SHOW TRANSCRIPT:

Welcome to BRAG Radio which is all about being rich and generous. Every week your hosts Kandas and bestselling author Larry Goins will show you how to be rich and generous by investing in real estate. Broadcasting around the world on the BRAG Radio Network from the flagship station WBT in beautiful uptown Charlotte, here are your hosts the rock stars of real estate; Larry and Kandas.

Larry: What’s happening? How’s everybody doing?

Kandas: How are you?

Larry: Doing good. I forgot this is not live people can’t respond back. I’m like, “How’s everybody doing?”

Kandas: It’s not like a stage, is it? With their clappers like they do at the event.

Larry: With their what?

Kandas: The clappers that they shake at the events.

Larry: That clappers, the Larry clappers right.

Kandas: Yeah.

Larry: That’s awesome I love it. So what’s been going on, how are you doing?

Kandas: I’m good, how are you?

Larry: I’m doing excellent. If it’s your first time listening to the show out there, this is BRAG Radio network, leading the world to be rich and generous. We teach people how to invest in real estate and then we encourage you to go out there and BRAG, Be Rich And Generous.

Kandas: Really be generous wherever you are right now because if you don’t give when you have a little you won’t give when you have a lot.

Larry: That’s true. I remember Jim Roan who was one of my favorite trainers, he’s known as The Father of Philosophy. Jim Roan used to say: It’s best when you start giving when the amounts are small because if you don’t, you won’t be giving when the amounts are large. Does that make sense?

Kandas: Yeah.

Larry: It does?

Kandas: It does to me.

Larry: That’s awesome. So you can go back and listen to previous episodes of BRAG at bragradio.com right.

Kandas: Yes you sure can. All of our episodes are up on bragradio.com.

Larry: That’s absolutely right.

Kandas: That’s right Kandas.

Larry: That’s right Kandas, just trying to fill in the dead space there when you stop talking.

Kandas: You guys can keep emailing me to info@bragradio.com as well. We get some really good questions. If you haven’t sent an email into there before we will go ahead and answer your questions and then we may bring it up on the air as well, because nine times out of 10 you’re not the only one that has that same question.

Larry: That is true. So what are we going to talk about this week?

Kandas: HUD.

Larry: HUD, we’re talking about HUD this week.

Kandas: I think we should talk about HUD.

Larry: We actually four HUD deals this past week. Usually we might get one or two, maybe sometimes three. But we got four HUD deals this past week.

Kandas: Four.

Larry: I mean listen, one of them was listed for $262,000, we simply bid 50%.

Kandas: 50%

Larry: $131,000.

Kandas: 50%.

Larry: Got it, done, booyah baby.

Kandas: He’s on a roll with these today Chad.

Chad: But it wasn’t your first bid I bet.

Larry: No it wasn’t. See the cool thing about HUD is you got to bid every single day right, every single day.

Kandas: To some people that’s annoying, to us it’s cool. You caught that right, like to some people it’s like, “Oh my gosh I got to submit this today,” but yeah that’s the way we were.

Chad: If they would have accepted their first then your bid would have been too high.

Larry: I don’t know I see, he’s searching on YouTube for videos to watch later.

Kandas: I think he’s searching some songs to play for you during the breaks too though.

Larry: Maybe so.

Kandas: Yeah.

Larry: So what we really wanted to do was have kind of a two-parter, right.

Kandas: A two-parter.

Larry: A two-parter, I got to get my Kandasism out here just to make sure you don’t make fun of me right.

Kandas: Why? Why you got to pull out something?

Larry: You’re making fun of me already, a two-parter.

Kandas: A two-parter.

Chad: Yeah that’s right.

Larry: A two parter is that good?

Kandas: I know it’s right, it’s just funny in his southern accent. We got a two-parter coming up here.

Larry: All right.

Kandas: What’s the first part?

Larry: Well the first part is I wanted to go through why I like HUD right. Why I like HUD, the benefits.

Kandas: Why I like HUD.

Larry: Why I like HUD, a HUD house right.

Kandas: Now do we need to explain the difference between HUD the way we’re referring to and HUD Section8?

Larry: Well the Section8 is a rental program where if you have a rental property right and you want to have a section8 tenant, HUD will subsidize the tenant’s rent. And sometimes they pay 100%, sometimes they pay 90% or all but $50 or all but $100 or whatever right. HUD will pay the majority of the rent, and that’s what’s called a Section8 Tenant right.

Kandas: Right.

Larry: Does that make sense.

Kandas: Now what we’re talking about with HUD is?

Larry: Is a foreclosed house, that where someone had an FHA loan right.

Kandas: Right.

Larry: Where someone had an FHA loan.

Kandas: And the government took it back.

Larry: That’s exactly right.

Kandas: Now the government is trying to get rid of it.

Larry: That’s true. Now HUD does not make loans, they insure loans.

Kandas: Right.

Larry: Right, they don’t make the loans. You get an FHA loan in say Bank of America, Wells Fargo or Chase or something and then a portion of the payment goes for an insurance premium like PMI, Private Mortgage Insurance or whatever. And then if the borrower defaults then the bank contacts HUD and says, “Hey I want my money back,” right.

Kandas: Yeah.

Larry: “We’ve been paying you these premiums every month I want my money back,” right it’s like their insurance policy.

Kandas: It’s exactly what it is.

Larry: So then HUD buys that loan and then HUD has to foreclose on that property right. And there’s a lot of advantages to HUD and I want to kind of go through those on this show because there are many advantages to buying a HUD house.

Kandas: So are the advantages to buying a HUD house why you love them?

Larry: It’s one of the reasons that I love them. It’s also the model or the way you buy them. For example, with HUD-well let me back up a little bit.

Kandas: Back it on up.

Larry: With any type of real estate okay, typically-all right. With any type of real estate-

Larry: Well the cool thing about HUD is there’s no phone calls, you’re not calling a seller, you’re not calling the agent, you’re not inquiring and getting a lot of information. There’s no negotiating going back and forth because all bids are-

Kandas: But that’s your favorite part, you love the negotiating.

Larry: And that’s true but there’s plenty of other sources of properties that you can negotiate with right. There’s plenty of other ones but with HUD but it’s all done online. You simply submit a bid at hudhomestore.com that’s the only place you can bid on a HUD house, is hudhomestore.com. So there’s no phone calls, there’s no negotiating, there’s no direct mail.

See a lot of people are doing direct mail to be able to get deals which basically means you’re sending out letters and postcards to absentee owners, meaning somebody who owns a house but they don’t live in the house. Maybe they already live out of state. That can potentially be a don’t-wanter. Probate is another direct mail list, right.

Kandas: He puts the –er in everything.

Larry: What?

Kandas: Parter, don’t-wanter.

Larry: A real estator, I’m a real estator.

Kandas: Exactly like that.

Larry: All right.

Kandas: Who’s the squirrel today? Like I cannot pay attention for anything right now.

Larry: I know. What’s going on with you?

Kandas: I don’t know. For some reason I just want to antagonize you.

Larry: Wow. And how’s that working out for you?

Kandas: It’s pretty good. Look you’re distracted.

Larry: Apparently. So some other benefits of HUD is you don’t have to do outside marketing, there’s no pay-per-click advertising. You don’t have to do Facebook marketing, you don’t have to go put out bandit signs, you don’t have to hire birddogs or property locators. There’s no advertising, nothing. Basically no expenses. Everything is done at hudhomestore.com right Kandas.

Larry: It’s just one, I tell people keep five to 10 different methods of getting deals going at any given time right.

Kandas: To keep your deal flow yes.

Larry: But HUD is the easiest, fastest, safest, secure, shortest, no-risk way to get deals right now in today’s market.

Kandas: Liar, I’m just kidding.

Chad: It sure would be nice if somebody would have written a book about HUD wouldn’t it?

Larry: You know what, that’s a great idea to have.

Kandas: Chad you’re on top of things today too, I am slipping. You guys have upped the bar with this show, this first segment today.

Larry: So Kandas tell them how to get a free copy of HUD Homes Half Off.

Kandas: Have you read it Chad?

Chad: I don’t have it.

Kandas: Yes you do.

Chad: I do not.

Larry: Do you know how to get it.

Kandas: You haven’t by the office for a tour.

Chad: I have not.

Kandas: Lynn came by the office for a tour, she has a copy of both of the books, which you guys can do too. If you give me a call, schedule an office tour 877-LARRY-GO you can schedule a tour, come by pick up the physical kit like Lynn did. Or I can send you the digital kit to your email address, 877-LARRY-GO or also text the word BRAG to 803-897-6063. We’ll be right back.

[09:52] [Break] [10:10]

Kandas: Welcome back to BRAG Radio this is Kandas and Larry.

Larry: What’s happening?

Kandas: He’s playing an air guitar, those of you that are watching us you can see what he’s doing. For those of you listening it sounds like dead air Mr. Sir.

Larry: Right. Well if you’re listening live you don’t see us because we’re not streaming but we do record it so you can go to BRAG Radio.

Kandas: That’s not a capability of our studio here.

Larry: It’s not in our wheelhouse.

Chad: That’s because we are radio.

Larry: There you go.

Kandas: We got to move to a bigger studio across the hall.

Larry: Well what you have to do is you have to go to bragradio.com and watch the streaming there, watch the videos.

Kandas: Nobody streams.

Larry: The archives.

Kandas: So all of these DJs here show talent here nobody streams?

Chad: Sometimes.

Kandas: Yeah see, we’re in the wrong little booth.

Larry: We’re in the wrong little booth?

Kandas: To be able to stream. We don’t have a sound board with the little sound effect things, we don’t have the caller capability.

Larry: I got my own sound effects.

Kandas: Of course you do, I don’t know that they want to hear them.

Larry: Yeah.

Kandas: I don’t know if I want to hear them.

Larry: Yeah all right. I don’t know what I have- this is obviously a free, cheap sound effect because the only thing coming up is a game right now.

Kandas: So this BRAG, Be Rich and Generous, we use real estate and that’s what we can teach you how to do as well. That’s been our avenue for both rich and generous. That’s right Kandas.

Larry: That’s exactly right Kandas, good job.

Kandas: So we’ve been talking about HUD where the first segment we started talking about HUD and why Larry loves HUD houses. You want to let them know a little bit of that?

Larry: Yeah. Also if you’re just watching this be sure and follow us on social media.

Kandas: You’re touching the spot.

Larry: Okay. Chad you guys are going to have to do this. You guys have a housekeeper over here? Someone left something sitting on my corner over here and I’m like standing closer to Kandas now because-

Kandas: He’s crowding me.

Larry: Okay I’m just going to cover it up with this little tissue thing.

Kandas: It’s like on Big Daddy instead of cleaning up the milk or the glue he just covers it up with newspaper.

Larry: Hey well it’s already dried up whatever it is yeah. When does housekeeping come by?

Kandas: So Larry is a germaphobe for those of you that don’t know. The best way to get him is to just talk about spores in the air or dirtiness of things that he’s going to touch.

Larry: Nastiness, all right so anyway.

Kandas: Anyway back to HUD.

Larry: Be sure and follow us on facebook.com/larryhgoins and you can follow us there and get updates, all of our BRAG episodes are also posted there as well on video and audio as well. So we’re talking about HUD houses. Some of the benefits of HUD houses, the reason that I like HUD houses, we talked about there’s no phone calls, there’s no negotiating, no direct mail, no bandit signs, no marketing, no advertising, no expenses.

And we also talked about that all HUD houses are bid on at this website, hudhomestore.com okay. Now some of the other benefits that I really like with HUD is most of them are already listed below market okay. That’s another benefit. Most of them are already listed below market. Now we did a deal a little while back where we actually paid more than list price for the property.

Kandas: Well sometimes people do that with these MLS properties too.

Larry: Yeah.

Kandas: I mean it happens on every platform when you’re trying to buy deals. Sometimes you do buy a little bit of both, what it’s listed for.

Larry: Yeah and sometimes you can pay more and because it’s already listed low enough okay. So we had a deal a little while back where it was listed for forty something and we actually paid 103% of list price. And we sold that house and how much did we make on that deal?

Kandas: Which one?

Larry: There you go. That’s my whole point right there.

Kandas: Trying to get me to put my phone down.

Larry: I know.

Kandas: I’m sorry I’m working. People are calling me and texting me to get the book.

Larry: Well put your phone down. Should do like take-

Kandas: I love you guys but I can’t talk to you whenever we’re on the air.

Larry: Yeah like I had jury duty this past week. And jury duty-

Kandas: See, look there’s another person.

Larry: Yeah just turn your phone over.

Kandas: Tampa.

Larry: Turn it over.

Kandas: I can’t I want to talk to them.

Larry: So I had jury duty right, I know I’m getting off track. But they don’t let you take your phone in.

Kandas: I bet you were dying, weren’t you.

Larry: Oh man yeah. Every once in a while I’d think, “I want to write this down, I want to take a note I just thought of something,” and I couldn’t do that because they don’t let you take your phone in there.

Kandas: I would not want you on a jury with me or for me.

Larry: Why?

Kandas: Because your brain is not going to be in what’s happening.

Larry: Well what if you killed someone?

Kandas: Your brain is not going to be in there in the courtroom.

Larry: Yeah it was.

Kandas: No, it wasn’t.

Larry: Now let me tell you something that is a racket okay. We show up we had to be there on time.

Kandas: The civil system.

Larry: There were several jurors that were late, we had to wait on them, they had no penalty or anything for being late. Then we get in there some attorneys that were driving from Columbia in South Carolina.

Kandas: I know.

Larry: Were an hour and a half late.

Kandas: And it couldn’t start without them, could it?

Larry: If it was me, if I ran the courtroom I would say, “Okay you guys got to pay for every-“ they were 86 jurors a pool of 86 jurors to pool from. I’d say, “You got to pay for this court, wasting all this court’s time.” And then of course the judge was at another courtroom across so he didn’t get there until 11. Then they call roll then they have to eliminate all the people that can’t read, that can’t write, that are over 65, under 18.

Kandas: Why can’t you be over 65?

Larry: Well if you’re over 65 they give you the option you can opt out and say I don’t want to do it right. But there were a lot of people there over 65 that were like, “Yeah I want to do it.”

Kandas: You’re going to be so happy whenever you turn 65, you’re going to be opting out every time you get called.

Larry: I would, absolutely. And then finally 11 o’clock the judge gets there they go through the roll call then the judge says, “Okay we’re going to take a recess come back at two.” This was 11:40, come back at two o’clock. We get there at two the judge walks out at 2:15 and says, “Ladies and gentlemen I want you guys to go and take off for the rest of the day.

Just call the number and we’ll let you know what time to be here.” So I called the number at seven o’clock that night and they said, “All cases have been settled, your service is no longer needed.” What a waste of everybody’s time.

Kandas: So I wonder when you were here- I know.

Larry: If it was me I would make a rule that all cases had to be settled within seven days of trial date. If not, you’re going to trial if not you’re going to pay court cost right.

Kandas: Why don’t you run with that motto?

Larry: I ain’t running for nothing. I got too much of a jaded past to run for anything.

Kandas: You do not have a jaded past.

Larry: I’m just kidding.

Kandas: You’re going to make people think bad about you.

Larry: I know, right.

Kandas: Jaded past. That’s why I can’t run.

Larry: Well that you do have a point.

Kandas: Whatever. Why don’t I get the same?

Larry: I’m just kidding.

Kandas: What happened to that? Why not oh Kandas no you’re just being sill now. You just go right along with it when it’s me.

Larry: I was just agreeing with you.

Kandas: Whatever.

Larry: Okay let’s get back to I paid over 100% or list price okay that’s what we were-

Kandas: 103%.

Larry: 103% list price. House was listed for 44-somehting HUD house and remember we were talking about most houses are listed below list. This one it was listed for 44-somehting and we paid 45 something like I don’t know 103% of list price. And we bought that property and we sold it $89,900 and we didn’t touch it. We did not even touch this property.

Kandas: Which we don’t touch any of them anymore. Y’all learnt a couple weeks ago about why we don’t do that, the Liberty property.

Larry: This was a fix and flip without the fix right.

Kandas: Yeah.

Larry: We made $38,000 on this house and we turn around and sold it and did nothing to it, absolutely nothing right.

Kandas: We had a student, I listened to one of the calls the other day. I randomly will go back and listen to our guys on the phone with students just see what they’re saying. So one of our guys was telling a student that had called in, I mean this is what we do all the time. And he almost couldn’t fathom the thought of being able to make money on a property that we don’t touch. Because he had been rehabbing for so long.

Larry: Oh he’ll see. The cool thing I love-

Kandas: It was crazy.

Larry: I love it when the light bulb goes off with students, “Wait a minute I just bought and sold a house in Alabama and I live in California? Wow I’m going to do this again, I didn’t know it was so easy.

Kandas: Yeah they don’t see it.

Larry: I know right. Now when we come back from the break I’m going talk about some more HUD benefits, I’m going to go through what a PCR is and why it’s absolutely imperative that you take a look at this before you put a bid in on a property okay.

Kandas: And the P in PCR does not me perative.

Larry: Imperative yeah be sure and call Kandas right now 877-LARRY-GO and ask for a free copy of HUD Homes Half Off the book. As well as some other things that are in the investors’ kit right.

Kandas: Yes both books. It’s the HUD Homes Half Off book, Real Estate Day Trading, there are some CDs and DVDs, things like that. If you’re getting a digital version which you are more than welcome to do by just calling 877-LARRY-GO, it will come with links to our additional trainings. You can also text the word BRAG to 803-897-6063.

[20:08] [Break] [20:28]

Kandas: Welcome back to BRAG Radio.

Larry: Leading the world to be rich and generous live from uptown Charlotte in the beautiful studios.

Kandas: What’s going on, what are you doing? Isn’t that your favorite Chad or is it Larry’s favorite part?

Larry: Yeah baby.

Kandas: You get the guitar face on when you’re playing that part.

Larry: Love some Van Hailing.

Kandas: On the air guitar. Chad that’s his triangle face.

Larry: You’re right, that’s funny. Yeah baby.

Kandas: Bliss oh my gosh these boys.

Larry: You have to go back and watch the video.

Kandas: You can’t see Chad though.

Larry: Yeah.

Kandas: Unfortunately, he’s just priceless.

Larry: Well sometimes we turn the camera around and shine it on him.

Kandas: Yeah but not when he’s doing the triangle.

Larry: And shine it on him.

Kandas: Shine the light on him.

Larry: We need to start putting it maybe up there.

Kandas: Let your light shine.

Larry: We should put it up there like aiming this setting.

Kandas: So they can see all of us.

Larry: Yeah that would be good.

Kandas: Yes that’s an excellent idea.

Larry: Chad don’t want that.

Kandas: And Lynn coming in here to remove the spot.

Larry: Yes we are on the air. Don’t leave this thing right here, you got to finish that.

Kandas: You know he’s a big baby. I can’t believe you went and got the thing to.

Larry: Some kind of nasty residue.

Kandas: Oh my gosh.

Larry: Oh thank you Lynn.

Kandas: Diva is the four letter word I’m looking for.

Larry: Lynn is awesome thank you. Now she’s just like cleaning everything. That’s like my two year old granddaughter.

Kandas: It smells fresh and citrusy in here now.

Larry: It really does, doesn’t it?

Kandas: Yes.

Larry: I like that. Good okay so today we’re talk about the benefits of HUD, why I like HUD houses so much.

Kandas: Why he like them so much.

Larry: And we’ve bought HUD houses as cheap as 20% of list price right. And we got four HUD houses just this week. Just this week we got four deals. Now we did kick one of them back, we threw one of them back but- you can see where she’s been cleaning everything over there. Wow that’s funny. Anyway so-

Kandas: Why did we throw it back?

Larry: Well it wasn’t as good a deal as we thought it was. And even still we got it at like 60% of list price. But it wasn’t as good a deal.

Kandas: So are we just going to go back and renegotiate or not renegotiate because you don’t renegotiate with HUD, but reevaluate and then start our bids lower?

Larry: Yeah that’s exactly what we’re going to do.

Kandas: Well then tell the people what we’re going to do.

Larry: At least I’m not on my phone.

Kandas: My phone is down, if you’re watching you can see. I put it down.

Larry: So anyway yeah what we’re going to do is we’re going to lower our bid and see if they accept the next bid right. Since we didn’t send out our deposit like we’re going to close.

Kandas: Right.

Larry: Then they understand well maybe it’s not as good a deal as they thought it was. So we’re going to continue to make offers lower.

Kandas: Now with the way that we are- sorry I want to just talk about this for a second. But with the way that we make a HUD bid on every HUD house in North Carolina, South Carolina and Georgia every day, how did we not know when our initial bids were going in, that we needed to bid lower?

Larry: You have to ask Andrea that question.

Kandas: I know the answer to that question.

Larry: She is our HUD girl right.

Kandas: She is our HUD muffin. So I will tell you though that I do know that our HUD bids are put on an automatic percentage right.

Larry: Well, yes and no. When we first started out, yes.

Kandas: Right, that’s what I mean.

Larry: However once you get your HUD bids going, then we put a specific number on each property.

Kandas: After an evaluation of it right.

Larry: Right after an evaluation of it and which she should be past that evaluation point on everything and putting a specific number on every property right.

Kandas: Yes. Just want to let the people know.

Larry: Right. So one of the other benefits that I love about HUD is HUD always provides what’s called a PCR. That stands for Property Condition Report. Now the cool thing about a PCR is now HUD when they foreclose on a property, they hire what’s called an asset manager, just like the banks do. The asset manager it’s their job to dispose of the property.

To sell the property right. So they hire what’s called Field Service Reps and the field service reps will go out and winterize the house, they’ll put the stickers in the windows, they’ll put the stripes and stuff or the tape and stuff over the toilets and the sinks so nobody uses it or pours water in there. And change the locks and all that stuff right.

Kandas: Right.

Larry: So one of the things that these field service reps do for HUD houses, this is only specific to HUD is they go out and they fill out a form and do what is called a PCR, Property Condition Report. Now I’m going to be the first one to tell you it’s not always 100% accurate okay.

Kandas: Nothing is.

Larry: Now I’ve see it to where-it’s both ways though. I’ve seen it to where they said the property needed something and it really didn’t. And then I’ve seen it to where they said it didn’t need something and it did right. But the great thing about the PCR is it gives you all of the major items right. For example HVAC, heating and cooling system okay.

That’s at the top of the list, they’re going to let you know they’re going to test it. They’re going to let you know if it’s operable and they’re going to let you know what worked or what didn’t work. The next they’re going to check is the wiring right. They’re going to go around and they’re going to even though the power is off okay.

They’re going to hook up a generator to it or a test thing, tester I don’t know what it is. Anyway they hook up a thing so they can test and make sure that all of the wiring works right. So the wiring that’s the second thing. The next thing they check is all of the appliances; the stove, the range oven, everything, dishwasher and even the kitchen cabinets right. They’re going to check and see if all that stuff is there or operable.

Kandas: Right.

Larry: Right. The next thing they’re going to check for is the plumbing. They’re going to check for is the plumbing, they’re going to check and make sure all the plumbing works. They’re going to test it, check it and make sure they’re-

Kandas: The get in the bathrooms and in the kitchen.

Larry: Yeah they’re going to check the drains to make sure the toilets flush, all the sinks drain. And they’re going to check the pressure on the plumbing to see if it holds pressure. Right like a lot of times you might see something like held 35psi, that’s per square inch pressure.

Kandas: Now they don’t test the hot water heater, do they? They just test to make sure there’s water.

Larry: Actually they do check all of the- I don’t want to call them utilities- but they do check just about everything except you’re absolutely right they do not check specifically the hot water heater.

Kandas: Do they?

Larry: Sometimes, it depends. I’ve seen some that do and I’ve seen some that don’t. Like on the house that we talked about in the previous segment, that house we had to replace the hot water heater before we close.

Kandas: But it was there.

Larry: It was there.

Kandas: The hot water heater was there, and it was noted on the PCR that it was there but when the-was it the buyer that did the inspection?

Larry: The buyer’s lender actually did the inspection.

Kandas: Okay that’s who figured out that the hot water heater didn’t actually heat the water. So that’s when we had to replace it.

Larry: That’s exactly right.

Kandas: Yeah.

Larry: That’s exactly right.

Kandas: Now do they go as far as to test the shower head versus just the water coming on at the base like in the tub?

Larry: Well what do you mean by test the showerhead?

Kandas: You know how if you have like the bathtub with the shower it’s not separate. So do they tests the showerhead as well or the just make sure there’s water?

Larry: They’regoing to test to make sure everything holds pressure.

Kandas: Okay.

Larry: So they’re going to put pressure at one end where it comes in the house.

Kandas: Right.

Larry: Where the water comes in, they’re going to put pressure there and then they’re going to go seal up everything else while they’re doing their inspection. And then they’re going to check and see if they’re going to put 35psi, per square inch of pressure on it. And then they’re going to do the rest of their inspection and then they’re going to come back and see does it still hold 35psi.

Kandas: Got you okay.

Larry: Right that’s what they do. So next thing is actually they do check the water heater most of the time. Remember I told you on one of our previous deals. So for the most part they do check the water heater and any other appliances or HVAC or whatever.

Kandas: And then they’re all noted on the report with a- they actually note them with the functionality like is it functioning and with a yes or no.

Larry: Right is it okay, yes or no.

Kandas: It’s really easy to read.

Larry: It is. You’re looking at one now.

Kandas: I am. Well you have it pulled up to be able to go over specifics with them. So it’s definitely easy to read and just condition is okay or.

Larry: Exactly. And then the last two things that they’re going to check is the roof and the septic system okay. Now they’re going to check the septic system whether it’s on a septic system or it’s a city sewer whatever. They’re going to check that to make sure it works and they’re going to check to make sure the roof doesn’t leak or if there’s any signs of leak. They’re going to crawl up in the attic and look.

Kandas: So they do crawl up in the attic?

Larry: Yeah. They’re going to check it out. And guys those are the main things that you see in a PCR right. That’s biggest things in the house. Call Kandas and get a free copy of the book.

Kandas: It is the biggest thing.

Larry: HUD Homes Half Off, right.

Kandas: Yeah that talks about it. In addition to that book you get the Real Estate Day Trading book 877-LARRY-GO or text the word BRAG to 803-897-6063.

[30:13] [Break] [30:32]

Kandas: Today with BRAG we’ve been talking about HUD houses.

Larry: HUD houses.

Kandas: BRAG Radio, investing in real estate to be rich and generous, most generous.

Larry: Exactly. Be sure and follow us on facebook.com/larryhgoins right.

Kandas: What’s that H stand for?

Larry: I don’t know, you tell me.

Kandas: HUD, tell them Chad.

Chad: That’s right.

Larry:

Kandas: The HUD guy, Larry HUD guy Goins.

Chad: He wrote the book on it.

Larry: I hear you.

Kandas: He did write the book on it.

Larry: Literally. Each one.

Kandas: Now too bad we don’t have some other-we need to come up with another acronym with his name for day trading too. We’ll work on that. Well let’s work on that Chad, we’ll work on that.

Chad: Okay.

Larry: That’s another book you can get by calling Kandas, Getting Started in Real Estate Day Trading: How to Buy and Sell Houses the Same Day Using the Internet. We’ve done it in 12 different states and you can too.

Kandas: Right yeah you can schedule a tour to come in and meet everybody and pick up the physical kit or I can send the digital kit to your email address. You’re so weird will you stop, I’m glad people can’t see all of that. I apologize to the people that can’t see us but I’m so glad like all of our listeners can’t see you misbehaving over here.

Larry: I’m just glad Lynn cleaned up this residue over here. So I’m okay now.

Kandas: And it you have any question about today’s show if you’ve been driving and not able to take notes or anything, you can check out bragradio.com for the show notes or send me an email to info@bragradio.com .

Larry: There you go and we’re talking about the benefits of HUD houses. I love buying HUD houses I am known as the HUD guy and wrote the book on it. And we buy and sell a lot of HUD houses, we actually got four offers accepted this week. Usually it might be one or two sometimes three but we actually had four offers accepted this past week.

Kandas: I know Andrea was so excited.

Larry: I know right. Even though we threw one of them back it’s okay. One of them was listed for 262 we picked it up for 131, another one was listed for like 130 or 40-something I think we picked it up for 70 or 80.

Kandas: I think it was 75 or something yeah.

Larry: Yeah and then another one was listed like just under 200 and we picked it up for like 110 or 111 or something. So yeah these are great fix and flip properties. Now we don’t do fix and flips.

Kandas: No we do not.

Larry: So call Kandas and find out how you can buy it and you can fix and flip it because all we want to do is-

Kandas: Yeah ask me how I know.

Larry: All we want to do is make a quick 10 or $15,000 on it and move it on to somebody else that can make 30% on it, right.

Kandas: Right yeah we want it to be a win-win for everybody. So it’s not like we’re in this to make like we were talking about earlier $38,000 on every property. Sometimes our formulas works out and the ARVs there-

Larry: That was a retail property.

Kandas: To where we can sell it to our homeowner that’s going to move into it. But we really just want to keep them off the books, in and out.

Larry: That’s exactly right. So there are a lot of HUD benefits we’ve gone over most of them are listed below; retail, they provide a PCR or a property condition report. The next thing we want to talk about is they’ve been cleaned out.

Kandas: That’s the best part. I don’t mind going and looking at when I have to go sign one of our HUD property or go do like an analysis of the area and take pictures and things like that of the HUD ones, I don’t ever mind those. MLS ones are a little sketchy but.

Larry: I’ve never been into a trashed HUD house.

Kandas: Right.

Larry: Never been into a trashed HUD house right.

Kandas: Yeah.

Larry: There just aren’t any. The asset manager sends a field service rep out and that’s part of what they do. If the people left furniture, if they left clothes, if they trash in and around the house, it’s even the storage buildings are cleaned out. And they have a new padlock on them right.

Kandas: Yeah no smells. That smells good to me.

Larry: Well that’s the next thing Kandas is if the house smells bad they remove the carpet. They go ahead and do that, they take all the carpet out.

Kandas: I know. Ask me how I know.

Larry: That’s funny.

Kandas: Call me 877-LARRY-GO and ask me how I know. I’ve been in several-

Larry: Hundred.

Kandas: Hundreds of these houses, I was going to say I didn’t want to say several tens of these houses but.

Larry: Yeah several tens?

Kandas: Yeah, hundreds of these houses.

Larry: That’s funny.

Kandas: And it smells good to me too so no smells is a very good thing for me.

Larry: Well it used to bother me when I first got into investing but I heard somebody say I believe it was Allan Thompson the founder of Met Atlanta REIA he said: There’s bucks in the yucks. It’s like nasty smelly house, there’s money in there.

Kandas: That is the quote of the day, there’s bucks in the yucks. I’m writing that down.

Larry: That was pretty cool huh. That was a good one. And I actually heard somebody say one time, we went into a nasty house and he said, “Smell that?” I’m like, “Yeah that’s the smell of money.”

Kandas: That smells like money.

Larry: That’s the smell of money right there.

Kandas: I’ve heard that one. Because you say that when we’ve gone to look at a few together, you’ve said that to me. That’s where I heard it.

Larry: It is true.

Kandas: Gosh.

Larry: So I know right.

Kandas: Yeah.

Larry: So they remove the remove the carpet they’ve been cleaned out. The next thing is you can buy them at a discount. I mean that kind of goes without saying but you can buy them at a discount right. Even at a deep discount like I mentioned, we buy a lot of HUD houses, 60, 50, 40, 30. I’ve even bought a couple of them at 20% of list price.

Kandas: And the thing is okay so we buy a lot of these in North and South Carolina. We’ve been one of the leading HUD buyers in the state for several years. But that doesn’t mean that we get priority over anybody else to bid or to buy.

Larry: No.

Kandas: Just because we’ve closed on more than the next guy, doesn’t give us any kind of clout or anything with HUD to get better discounts or deeper discounts or anything like that. It’s all just based on what their bottom line for the property.

Larry: They could care less about us.

Kandas: They don’t care who we are. We should get an award of something for taking all these of their hands but we don’t.

Larry: And a lot of people say, “Larry why are you teaching your competition?”

Kandas: A holiday, a hug maybe. I don’t know, something.

Larry: I know right. Well a lot of people do say, “Why are you teaching your competition?” well the sad truth is most people aren’t going to follow through anyway right.

Kandas: Well yeah not only that but I mean everybody is so diverse in what they’re looking for. We have a very specific model.

Larry: That’s true.

Kandas: And we have a very specific formula and everybody doesn’t have to have that same formula to make ends meet.

Larry: That is so true.

Kandas: Okay you guys are just blowing up my phone.

Larry: That is so true.

Kandas: I will call you and get you the investor’s kit as soon as we’re off the air.

Larry: Yeah don’t discourage people not to call right.

Kandas: No, call me. Blow it up I just can’t talk to you right now.

Larry: Alright so the next thing I want to talk about as far as benefits is there’s no deed restrictions. Now this is a big one Kandas right. There’s no deed restrictions.

Kandas: No deed restrictions, huge.

Larry: None. Now what does that mean?

Kandas: It’s huge.

Larry: That means now there are some sellers out there, some banks like Fannie May and I believe that is Home Path if you buy a house through Home Path, you can’t sell that house for more than I believe it’s 10% profit in the first 90 days. So anyway with HUD you can buy a house at 10 o’clock and then have your closing to sell it lined up at 10:30 and you can buy it for $5000 and sell it for $50,000. HUD doesn’t care.

Kandas: And see and that’s merging a little bit of our other strategy with this in the other book that people get too, Real Estate Day Trading.

Larry: Yeah buying and selling the same day.

Kandas: Yeah it merges a little bit of the two together. And you’ll find that I think across all of our trainings is negotiating aside from HUD is the same whether the end strategy is filthy riches or ultimate buying and selling machine. Where and people that don’t know those courses haven’t listened to us before the exit strategy being seller financing or lease option or wholesaling. They cross over.

Larry: That’s exactly right.

Kandas: What are you doing?

Larry: I’m looking up another website here that I wanted to share. Now remember there’s no deed restrictions, you can buy it and sell it. You can make as much on it as you want to, you don’t have to hold it a specific length of time. So people call that seasoning, in other words where you have to own the property for a certain length of time before you before you can sell it for more than X amount of profit right.

Kandas: Right. And there’s another thing with HUD too, you’ve got to make sure that you always do business honestly and ethically. But with HUD when you go into hudhomestore and you’re searching make sure you choose the correct type of buyer. As far as we are concerned we are investor buyers so we’re only going to be looking at extended properties.

Larry: That’s true, there are some different buyer types that you bid. So make sure you bid as an investor. Now the last thing I want to mention with HUD is there’s a lot of data available. One of the websites that I wanted to share with you is hudhomevalue.com. I wasn’t sure if it was singular or plural so that’s why I wanted to look it up right quick.

Kandas: And it’s-

Larry: But it’s singular, hudhomevalue.com but you can search and find out what every HUD house has sold for, is for sale for and they even give you an idea as to what they think they will take for a HUD property. Now I will tell you this, that part is irrelevant because I’ve seen them tell me you’re going to have to bid $200,000 on this and we got a bid accepted for 110 right.

Kandas: Right.

Larry: And I’ve also seen it the other way around as well.

Kandas: It could go either way. But the best thing would be for people to give us a call, 877-LARRY-GO and just get the book. Request the digital investor’s kit, sent out to your email. I can get that out, text the word BRAG to 803-897-6063. You could also let me know you want to take an office tour and come by and pick up the physical kit.

Thank you Kandas and make sure to tune in every Saturday for BRAG Radio leading the world to be rich and generous. Larry and Kandas will show you how to invest in real estate and the many ways real estate creates the ideal investment.

For more information about what Larry and Kandas talked about on today’s BRAG Radio or to get a free investor’s kit, call 877-LARRY-GO, 877-527-7946. It’s Brag Radio be rich and generous on News Talk 1110993WBT.